Question 1

All of the following explain the growth in output per worker hour during the 20th century except

Accepted Answer

A)  the quality of labor improved during that period. 
B)  the quantity of labor increased during that period. 
C)  the quality of capital improved during that period. 
D)  the worker-capital ratio decreased during that period. 
A)  the quality of labor improved during that period. 
B)  the quantity of labor increased during that period. 
C)  the quality of capital improved during that period. 
D)  the worker-capital ratio decreased during that period.

Question 2

The floods of 1993 caused the price of corn to increase. This is an example of

Accepted Answer

A)  inflation. 
B)  deflation. 
C)  a sustained inflation. 
D)  the operations of supply and demand. 
A)  inflation. 
B)  deflation. 
C)  a sustained inflation. 
D)  the operations of supply and demand.

Question 3

Related to the Economics in Practice on p. 133: If a retiree's pension is tied to the CPI, her monthly pension check would tend to grow ________ if the pension is tied to the ________ CPI.

Accepted Answer

A)  slower; fixed-weight 
B)  slower; chain-linked 
C)  faster; chain-linked 
D)  The check would grow at the same rate regardless of the type of CPI to which it is tied. 
A)  slower; fixed-weight 
B)  slower; chain-linked 
C)  faster; chain-linked 
D)  The check would grow at the same rate regardless of the type of CPI to which it is tied.

Question 4

Which of the following is not a desirable characteristic in an economy?

Accepted Answer

A)  growing per-capita output 
B)  low inflation 
C)  low unemployment 
D)  population increasing faster than output 
A)  growing per-capita output 
B)  low inflation 
C)  low unemployment 
D)  population increasing faster than output

Question 5

The demand for refrigerators falls when the economy enters a downturn. If a refrigerator manufacturer lays off workers during an economic downturn, this would be an example of

Accepted Answer

A)  frictional unemployment. 
B)  natural unemployment. 
C)  structural unemployment. 
D)  cyclical unemployment. 
A)  frictional unemployment. 
B)  natural unemployment. 
C)  structural unemployment. 
D)  cyclical unemployment.

Question 6

The natural rate of unemployment is cyclical plus frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 7

If the unemployment rate is 6.1% and the number of people employed is 400,000, the labor force is approximately

Accepted Answer

A)  402,500 people. 
B)  426,000 people. 
C)  431,000 people. 
D)  464,500 people. 
A)  402,500 people. 
B)  426,000 people. 
C)  431,000 people. 
D)  464,500 people.

Question 8

If period 1 is the base year, the bundle price of goods in period 1 is $300, and the bundle price of goods in period 2 is $320, the period 2 price index is

Accepted Answer

A)  93.3. 
B)  93.8. 
C)  106.2. 
D)  106.7. 
A)  93.3. 
B)  93.8. 
C)  106.2. 
D)  106.7.

Question 9

Refer to the information provided in Table 7.1 below to answer the questions that follow.
Table 7.1  
-Refer to Table 7.1. The employment rate is

Accepted Answer

A)  85.7%. 
B)  83.3%. 
C)  82.4%. 
D)  75.0%. 
A)  85.7%. 
B)  83.3%. 
C)  82.4%. 
D)  75.0%.

Question 10

The unemployment rate is

Accepted Answer

A)  unemployed/population × 100. 
B)  (employed - unemployed)/labor force × 100. 
C)  (labor force - employed)/labor force × 100. 
D)  (employed - labor force)/employed × 100. 
A)  unemployed/population × 100. 
B)  (employed - unemployed)/labor force × 100. 
C)  (labor force - employed)/labor force × 100. 
D)  (employed - labor force)/employed × 100.

Question 11

The average growth rate of output in the U.S. economy since 1900 has been

Accepted Answer

A)  2.4%. 
B)  3.3%. 
C)  6.3%. 
D)  10.5%. 
A)  2.4%. 
B)  3.3%. 
C)  6.3%. 
D)  10.5%.

Question 12

Which of the following is a desirable feature in an economy?

Accepted Answer

A)  rapid increase in output per worker 
B)  low inflation 
C)  low unemployment 
D)  all of the above 
A)  rapid increase in output per worker 
B)  low inflation 
C)  low unemployment 
D)  all of the above

Question 13

Increasing the efficiency of various employment agencies to find better matches for those looking for jobs will

Accepted Answer

A)  reduce the natural rate of unemployment. 
B)  reduce structural unemployment. 
C)  reduce cyclical unemployment. 
D)  not affect frictional unemployment. 
A)  reduce the natural rate of unemployment. 
B)  reduce structural unemployment. 
C)  reduce cyclical unemployment. 
D)  not affect frictional unemployment.

Question 14

Which of the following statements is not true?

Accepted Answer

A)  The unemployment rate does not tell us anything about the duration of unemployment. 
B)  The duration of unemployment increases during recessions. 
C)  The duration of unemployment increases during economic expansions. 
D)  The unemployment rate plus the employment rate equals 100% of the labor force. 
A)  The unemployment rate does not tell us anything about the duration of unemployment. 
B)  The duration of unemployment increases during recessions. 
C)  The duration of unemployment increases during economic expansions. 
D)  The unemployment rate plus the employment rate equals 100% of the labor force.

Question 15

Drew wants to borrow $500 from Bob. Bob wants to make 4% real return on his money, so they both agree on an 4% interest rate paid next year. Both don't anticipate the -5% inflation next year. In this case

Accepted Answer

A)  Drew will pay an 4% real interest rate. 
B)  Bob is better off. 
C)  Drew will pay an 13% nominal interest rate. 
D)  all of the above 
A)  Drew will pay an 4% real interest rate. 
B)  Bob is better off. 
C)  Drew will pay an 13% nominal interest rate. 
D)  all of the above

Question 16

If the number of people classified as unemployed is 20,000 and the number of people classified as employed is 620,000, what is the unemployment rate?

Accepted Answer

A)  1.6% 
B)  3.1% 
C)  10.6% 
D)  632% 
A)  1.6% 
B)  3.1% 
C)  10.6% 
D)  632%

Question 17

When an individual is not working and is not looking for a job because he/she lacks any marketable job skills, he/she is

Accepted Answer

A)  structurally unemployed. 
B)  frictionally unemployed. 
C)  cyclically unemployed. 
D)  none of the above 
A)  structurally unemployed. 
B)  frictionally unemployed. 
C)  cyclically unemployed. 
D)  none of the above

All of the following explain the growth in output per worker hour during the 20th century except

The floods of 1993 caused the price of corn to increase. This is an example of

Related to the Economics in Practice on p. 133: If a retiree's pension is tied to the CPI, her monthly pension check would tend to grow if the pension is tied to the CPI.

Which of the following is not a desirable characteristic in an economy?

The demand for refrigerators falls when the economy enters a downturn. If a refrigerator manufacturer lays off workers during an economic downturn, this would be an example of

The natural rate of unemployment is cyclical plus frictional unemployment.

If the unemployment rate is 6.1% and the number of people employed is 400,000, the labor force is approximately

If period 1 is the base year, the bundle price of goods in period 1 is $300, and the bundle price of goods in period 2 is $320, the period 2 price index is

Refer to the information provided in Table 7.1 below to answer the questions that follow. Table 7.1 -Refer to Table 7.1. The employment rate is

The unemployment rate is

The average growth rate of output in the U.S. economy since 1900 has been

Which of the following is a desirable feature in an economy?

Increasing the efficiency of various employment agencies to find better matches for those looking for jobs will

Which of the following statements is not true?

Drew wants to borrow $500 from Bob. Bob wants to make 4% real return on his money, so they both agree on an 4% interest rate paid next year. Both don't anticipate the -5% inflation next year. In this case

If the number of people classified as unemployed is 20,000 and the number of people classified as employed is 620,000, what is the unemployment rate?

When an individual is not working and is not looking for a job because he/she lacks any marketable job skills, he/she is

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 7: Unemployment, Inflation, and Long-Run Growth

All of the following explain the growth in output per worker hour during the 20th century except

The floods of 1993 caused the price of corn to increase. This is an example of

Related to the Economics in Practice on p. 133: If a retiree's pension is tied to the CPI, her monthly pension check would tend to grow ________ if the pension is tied to the ________ CPI.

Which of the following is not a desirable characteristic in an economy?

The demand for refrigerators falls when the economy enters a downturn. If a refrigerator manufacturer lays off workers during an economic downturn, this would be an example of

The natural rate of unemployment is cyclical plus frictional unemployment.

If the unemployment rate is 6.1% and the number of people employed is 400,000, the labor force is approximately

If period 1 is the base year, the bundle price of goods in period 1 is $300, and the bundle price of goods in period 2 is $320, the period 2 price index is

Refer to the information provided in Table 7.1 below to answer the questions that follow. Table 7.1 -Refer to Table 7.1. The employment rate is

The unemployment rate is

The average growth rate of output in the U.S. economy since 1900 has been

Which of the following is a desirable feature in an economy?

Increasing the efficiency of various employment agencies to find better matches for those looking for jobs will

Which of the following statements is not true?

Drew wants to borrow $500 from Bob. Bob wants to make 4% real return on his money, so they both agree on an 4% interest rate paid next year. Both don't anticipate the -5% inflation next year. In this case

If the number of people classified as unemployed is 20,000 and the number of people classified as employed is 620,000, what is the unemployment rate?

When an individual is not working and is not looking for a job because he/she lacks any marketable job skills, he/she is

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Related to the Economics in Practice on p. 133: If a retiree's pension is tied to the CPI, her monthly pension check would tend to grow if the pension is tied to the CPI.